Work with Single or multiple Real Estate agents/Wholesalers?

[Account Closed]

Hi BP,

 I am newbie investor and started to explore few NJ/PA markets for investment.I am getting lot of guidance and help from fellow BP members. Since i am exploring new markets also getting offers for real-estate agent/wholesaler services. I have started connecting with few people now.

Would like to understand is it common for a REI to work with one agent/wholesaler or multiple?

Eventually i wish to work one agent, but will be talking to multiple agents as i figure out my preferred agent.

Would like to understand what is the common practice and apperciate if you share your experience.

Thanks,

Vijay

[StacyA McBain]

Honesty and open dialog is indeed the best policy. It helps everyone set reasonable expectations. Also- all contracts are negotiable, including the representation agreement. You don't need 3 agents watching the MLS with you, but you may advise your agent that you would like any deals obtained through your wholesaler excluded from your representation agreement.

The flip side about dealing with listing agent directly, as Paul suggests, is that you don't have your own representative,  fully watching out for your best interest and helping you get the BEST deal. (The listing agent or a wholesaler is committed more strongly to you buying THEIR deal). The listing side pays the commission, which already has been negotiated with the Seller. There's no guarantee that a reduction in commission would occur or that it would translate into  Buyer savings, even if that agent is working on both sides of the transaction. 

The focus when shopping for agents easily shifts to commissions, however it's important to remember there is value, negotiating strength and expertise that a good agent will bring to Your side of the table - that can pay itself back quickly (especially if it's the seller paying the actual tab). 

Any agent who is not a strong resource and member of your power team isn't the right agent for you. That said, one agent you're loyal to could be a stronger member of your team than 4 other agents combined (in the same way that you'd be a better client for them than 4 non-loyal clients). 

Buyers often need instant or extra availability, knowledge, market expertise, rental market familiarity and help when a house of interest/good deal requires fast action, and on most days I can prioritize "dropping everything" for the folks who are truly loyal clients. Those clients also are the first who will hear about a deal from me, and will be top of mind as I monitor the market. With good deals being sparse, that's a decent position to play, at least from my perspective as an REI agent who started out as a very loyal client for my first ten deals.